With the vast majority of top flight stocks in positive territory, the Footsie finished 97.2 points higher at 5294, a gain of 1.9%.

On the currency markets, the pound dropped around 0.5% against the dollar as traders prepared for Tuesday's third quarter GDP release, which is expected to show the UK economy contracted by 0.1%, rather than the 0.3% previously thought.

Oil explorer Cairn Energy set the pace in the FTSE 100 Index as shares surged almost 5% or 142p higher at 3188p after the company said drilling off the coast of western Greenland will start a year ahead of schedule.

Royal Dutch Shell was also up 48p to 1767p or 3% amid reports of Chinese interest in Nigerian assets up for sale.

Interest in the sector was heightened by the latest meeting of the OPEC oil cartel scheduled for Tuesday, with no change in production levels for 2010 expected.

However, temporary power specialist Aggreko made a disappointing start to life as a top flight stock. Shares were 13p lower at 887p following its promotion from the FTSE 250 Index on Friday.

London Stock Exchange was 11.5p down at 706p after it announced plans to buy smaller rival Turquoise and merge it with its Baikal business.

In the second tier, oil services firm Hunting was the top riser, adding 36.5p to 543.5p or 7% after it forecast trading "toward the high end of market expectations" this year.

Johnson Service Group was another strong riser as it announced new banking facilities through to April 2013. The new terms with a consortium of banks including Lloyds and Royal Bank of Scotland is worth £78.5m (€88.2m) and comes after a period of major debt reduction at the Johnsons dry cleaning firm.

Shares rose 3% or 0.75p to 23.25p.

The biggest Footsie risers were Cairn Energy up 142p at 3188p, Prudential 27p higher at 625p, Aviva up 15p at 384.7p and Old Mutual 3.9p higher at 107.3p.

The biggest fallers were London Stock Exchange down 11.5p at 706p, Aggreko off 13p at 887p and Sage down 1p at 223.2p.